Saturday, January 11, 2014

North Carolina Cut Jobless Benefits and the Sky Didn’t Fall

Politico, By Diana Furchtgott-Roth, January 10, 2014

As the House of Representatives ponders whether to follow the Senate’s example and extend unemployment benefits, members might want to consider the case of North Carolina, where employment has increased and unemployment has declined from 8.8 percent to 7.4 percent in the five months following dramatic cuts in the state’s unemployment benefits


The decline in the duration of unemployment benefits did not necessarily cause the employment gains, but it did not harm the state’s economy. So much for those who say the sky will fall if Congress does not extend federal emergency unemployment insurance benefits, which expired at the end of 2013.

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